News and Press Releases of DIW Berlin News and Press Releases en DIW Berlin Marcel Fratzscher: „Euro area reform deal is a disappointing compromise“ ]]> Tue, 04 Dec 2018 02:13:00 +0200 Social Sustainability Labels: Promises and Reality in the Example of Fairtrade-Coffee By Pio Baake, Jana Friedrichsen, and Helene Naegele

Fairtrade certification is intended to improve both the income and living conditions of producers, thereby creating more fairness in international trade. However, theoretical considerations and empirical studies show that this goal is only achieved to a limited extent, at least for coffee: Faitrade certification leads at best to small increases in income for coffee farmers. The results on the reduction of income volatility, payments used to implement social projects, and improved access to credit are also mixed. Fairtrade is a means of market segmentation for roasters and retailers. [...]

Mon, 03 Dec 2018 05:00:00 +0200
Gert G. Wagner was awarded the Cross of Merit of the Federal Republic of Germany Gert G. Wagner was awarded the Cross of Merit of the Federal Republic of Germany on September 3, 2018, by Federal President Frank-Walter Steinmeier for his services to the Federal Republic of Germany. The cross was presented on November 19, 2018, by Berlin’s Secretary of State, Christian Gaebler.

As a Professor Emeritus, Gert G. Wagner continues to be very active in research and policy work: he is working as a Senior Research Fellow at the SOEP and as a Max Planck Fellow at the Max Planck Institute for Human Development. In April, he joined the network of the Alexander von Humboldt Institute for Internet and Society as a Research Associate. Since June, he has been a member of the newly created interdisciplinary research group “Implications of digitization for the quality of science communication" at the Berlin-Brandenburg Academy of Sciences and Humanities (BBAW) in cooperation with acatech (German Academy of Science and Engineering). In July, he was appointed to the editorial board of the renowned multidisciplinary online journal PLOS One.
Recently he was re-appointed to a four-year term on the Advisory Council for Consumer Affairs of the Federal Ministry of Justice and Consumer Protection by Katarina Barley, Federal Minister of Justice and Consumer Protection.

Mon, 26 Nov 2018 03:17:00 +0200
Jürgen Schupp re-appointed to the Rat für Kulturelle Bildung Jürgen Schupp was re-appointed to the Rat für Kulturelle Bildung (Council for Cultural Education) as an expert for three years until 2021.
The Rat für Kulturelle Bildung is an independent advisory board that analyzes the situation and quality of cultural education in Germany and makes recommendations based on exposés and studies for policy makers, researchers, and practical applications.

Mon, 26 Nov 2018 03:09:00 +0200
Report on the first CNEF User Workshop at DIW Berlin From November 5 to 7, DIW Berlin hosted the SOEP’s first international workshop on longitudinal data management and analysis.
In contrast to our regular German SOEP workshops, this one was devoted specifically to comparative longitudinal and cross-country designs using the SOEP and its international sister household panels. Paula Fomby of the University of Michigan and Marco Giesselmann of the SOEP introduced the 20 researchers from four continents in attendance to the SOEP and the US Panel Study of Income Dynamics (PSID) over the first two days of the workshop. The third day of the workshop consisted of sessions on cross-country designs; an introduction to the CNEF project, which focuses on providing harmonized cross-national micro-data variables; and a lecture from SOEP staff member Markus M. Grabka.

In line with its commitment to expanding work in the provision and harmonization of cross-national panel data, the SOEP plans to hold workshops like these on an annual basis in the future.

Thu, 22 Nov 2018 04:07:00 +0200
Report on the first InGRID-2 Summer School at DIW Berlin Summer School “Advanced Research on Integration of Migrants and Refugees” and EU-SILC Training Workshop “Comparative Research on Migration”, October 22-26, 2018

The 2018 summer school for early-stage researchers combined advanced research on the integration of refugees and migrants with training in the use of a clone of EU-SILC longitudinal data for Germany. The clone was created with the help of SOEP data and is especially valuable in the study of methodological issues in migration research. The different migration subsamples in the SOEP allow more detailed analysis of first- and later-generation migrants in Germany than the original EU-SILC sample provided by Eurostat.

The InGRID Team at DIW Berlin selected 27 of the 154 proposals submitted for the summer school. It was attended by 22 young researchers from the Netherlands, Belgium, France, Italy, Ireland, Hungary, Poland, Germany, Luxembourg, Norway, and the Czech Republic. Jürgen Schupp, Vice-Director of SOEP at DIW Berlin, and Maria Metzing opened the summer school on Monday. Over the course of the week, there were four keynote speeches, eight sessions, a poster session where participants presented their work, and a training workshop on the EU-SILC clone.

The first keynote by Tuba Bircan (HIVA-KU Leuven) discussed the representation of migrants in large-scale surveys. The second keynote by Herbert Brücker (IAB, BIM, and Humboldt University Berlin) presented the theoretical framework and discussed descriptive results on the integration of refugees into the labor market. On Wednesday, Roland Verwiebe (University of Vienna) gave a third keynote “On changing social stratification of the city: Why are migrants declining from the middle of society in Vienna?” In the late afternoon, participants attended a screening of the documentary, “Iuventa,” on the rescue of refugees in the Mediterranean Sea. After the film, conference participants discussed the refugee situation in the Mediterranean and the work of NGOs with one of the film’s producers and one of the main characters in the film. On Thursday, there were training workshops on EU-SILC, including a presentation by Heike Nachtigall (SOEP DIW) on EU-SILC and the SOEP clone, a presentation by Sandra Bohmann (SOEP DIW) on the SOEP, and an introduction to the clone in STATA. On Friday, Alyssa Schneebaum (WU Vienna) gave the last keynote on the “Intergenerational educational mobility of children of immigrants and natives across Europe: Evidence from the EU-SILC”.

The summer school gave participants the opportunity to present their research and receive constructive critical feedback from one of the four keynote speakers, Jürgen Schupp, Silke Hans (Georg August University Göttingen), Nicolas Legewie (SOEP / DIW Berlin), and other participants. It also featured a presentation on the InGRID-2 project with information on visiting grants and application procedures.

We thank all of the participants in the workshop for their presentations, keynote speeches, and feedback. Special thanks go to Christine Kurka (SOEP DIW) and Janina Britzke (SOEP DIW) for their support in the organization of the event.

Thu, 22 Nov 2018 03:29:00 +0200
Review: DIW Europe Lecture with Margrethe Vestager On November 19 Margrethe Vestager was the speaker at the 5th DIW Europe Lecture. Margarethe Vestager is EU Commissioner for Competition and gave her lecture on “How Europe can cooperate to compete”.

You may find a review of the event here

The DIW Europe Lecture is a lecture series by leading policy-makers and academics on the future of Europe. The series aims at fostering and informing the debate on key European policy issues, and at bringing this debate to the heart of Germany's policy-making in Berlin. In the series lectures were delivered by Christine Lagarde, Managing Director of the IMF,  Mario Draghi, president of the ECB, Lawrence H. Summers, former US Secretary of the Treasury and president of Harvard university, and Barry Eichengreen, Professor at Berkley.

Tue, 20 Nov 2018 05:10:00 +0200
Joachim Herz Foundation Fellowship awarded to Magdalena Krieger Magdalena Krieger has been awarded a 2018 Joachim Herz Foundation “Add-on Fellowship for Interdisciplinary Economics" in the amount of 12,500 euros.
The fellowship’s aim is to support PhD students and post-docs working on interdisciplinary economic questions.

The fellowship goes to support her dissertation on immigrant families and their integration into the German labor market.

Mon, 19 Nov 2018 05:13:00 +0200
Innovative Business Models for Clean-techs The energy transition plays a critical role in climate change mitigation, yet it is not occurring at a speed that effectively meets greenhouse gas reduction targets (IPCC, 2018). Policy makers are confronting the challenge to unlock flexibility and efficiency of energy systems. Among others, the European Commission (2016a, 2016b, 2017a, 2017b), the German Ministry of Economics and Energy BMWI (2017) and the former British Department of Energy and Climate Change DECC (2015) call for new business models (BMs) to overcome the inertia prevalent in the system.

Wed, 14 Nov 2018 08:30:00 +0200
Caroline Stiel has successfully defended her dissertation Caroline Stiel, who works at the Firms and Markets department, has successfully defended her dissertation at the Technische Universität Berlin.

The dissertation with the title "German Public Utilities: Organisation and Productivity" was supervised by Prof. Dr. Tomaso Duso (Technische Universität Berlin, DIW Berlin) und Dr. Astrid Cullmann (Technische Universität Berlin, DIW Berlin).

We congratulate Caroline on her success and wish her all the best for her future career.

Fri, 09 Nov 2018 12:55:00 +0200
Rental market regulation over the last 100 years in an international comparison by Konstantin Kholodilin, Jan Philip Weber und Steffen Sebastian 

Residential rental markets regulations have become an integral part of everyday life in Germany as in almost all other countries. The strong house price and rent increases over the past decade have fueled social debate on this issue. Tenant movements worldwide are demanding tighter regulations and advocating for affordable housing as a central civil right. In contrast, those skeptical of regulation fear excessive levels will impair market mechanisms. Scientific analyses on this topic have so far often failed due to insufficient data. The present study addresses this problem and presents a unique dataset that quantifies rental market regulations. Indices for measuring regulation intensity are available for 64 countries and date back more than 100 years. The dataset enables an examination of regulation intensities and regimes in a cross-country comparison. Such a comparison shows that Germany—compared to the rest of Europe—has relatively intense rent control which has been tightened even further since 2015. The impact of these changes should be accompanied by further analysis in the future.


Wed, 07 Nov 2018 12:02:00 +0200
Immigration from other EU countries has increased Germany’s economic growth since 2011 Since 2011, over five million immigrants from other EU countries have immigrated to Germany – A DIW Berlin simulation shows that this immigration has increased GDP growth by an average of 0.2 percentage points every year – More needs to be done to improve employment opportunities for the highly qualified, for example by simplifying the procedures for recognizing foreign qualifications

Immigration from other EU countries increased Germany’s GDP growth by an average of 0.2 percentage points every year between 2011 and 2016—and for some years, such as 2015, the high point of EU immigration, by even more (0.3 percentage points). Immigrants filling open jobs increases overall economic employment, leads to additional consumer demand, and avoids bottlenecks in the labor market, which would have led to higher production costs and prices and reduced growth accordingly. These are the findings of Marius Clemens, economic researcher at the German Institute for Economic Research (DIW Berlin), and his co-author Janine Hart from the University of Potsdam, which have been published in their new study.

Wed, 31 Oct 2018 03:15:00 +0200
A sustainable development of inflation in euro area requires continuously improving labor market In the past five years, the inflation in the euro area has been well below the European Central Bank’s (ECB) aimed inflation rate of close to but below two percent for achieving its objective of price stabilization in the medium term. The present analysis shows that expectations of low inflation, rising cyclical unemployment, and external factors such as low crude oil prices were responsible. In the middle of this year euro area price development picked up again. At its meeting in June this year the Governing Council of the ECB decided to end the asset purchase programme (APP) by December of this year and held out the prospect of a first rise in key ECB interest rates after the summer 2019. This necessitates a continuing, sustained inflation momentum. However, core inflation excluding energy and food prices has remained relatively low until now. The ECB is primarily relying on increasing wage momentum to drive core inflation in the near future. As DIW calculations show, this relationship exists but it is quantitatively rather weak. For core inflation to support the medium term price stability in the upcoming years, wages must continue to grow considerably.

Wed, 24 Oct 2018 12:00:00 +0200
Aleksandra Peeva has successfully defended her dissertation Aleksandra Peeva, has successfully defended her dissertation at the Humboldt-Universität zu Berlin.

The dissertation with the title "Political Goals, Economic Constraints: Explaining the Motivation and Effects of Economic Sanctions" was supervised by Prof. Marcel Fratzscher, Ph.D. (DIW Berlin, Humboldt-Universität zu Berlin) and Prof. Dr. Nikolaus Wolf (Humboldt-Universität zu Berlin).

We congratulate Aleksandra on her success and wish her all the best for her future career!

Tue, 23 Oct 2018 06:29:00 +0200
Jakob Miethe interviewed on Deutsche Welle English on the effect of international information exchange In recent years, the global community has promoted several initiatives aimed at breaking bank secrecy in tax havens. Such treaties for the exchange of information among tax offices can be effective. A treaty between country A and tax haven B reduces deposits from A in banks of B by approximately 30 percent. However, the analysis shows that tax evaders react to such treaties not by becoming honest taxpayers but rather by adapting their practice of tax evasion.

Interview available (from minute 04:32) here 

Fri, 19 Oct 2018 02:11:00 +0200
Refugees in Germany with children still living abroad have lowest life satisfaction Family strongly influences personal well-being—especially in the case of refugees, whose family members often remain in their homeland. This report is the first to closely examine the well-being and family structures of refugees who came to Germany between January 2013 and January 2016. It uses data from the IAB-BAMF-SOEP Survey of Refugees in Germany. Among individuals aged between 18 and 49, nine percent have minor children living outside Germany, whereas twelve percent have a husband or wife living abroad. If the nuclear family is living in Germany—which is more often the case for women than men—refugees are measurably more satisfied with their lives. These findings are also confirmed when accounting for other potential factors for well-being. These findings should be given greater consideration—not least in the debate on family reunification—to enable successful migration, integration, and family policies. [...]

Wed, 17 Oct 2018 05:38:00 +0200
International treaties insufficiently curb global tax evasion In recent years, the global community has promoted several initiatives aimed at breaking bank secrecy in tax havens. Such treaties for the exchange of information among tax offices can be effective. A treaty between country A and tax haven B reduces deposits from A in banks of B by approximately 30 percent. However, the analysis shows that tax evaders react to such treaties not by becoming honest taxpayers but rather by adapting their practice of tax evasion. Consequently, the international community must crack down on tax evasion more aggressively – for example, by disclosing the final beneficiaries of assets in tax havens or making it difficult for financial institutions in tax havens to access international capital markets. [...]

Wed, 17 Oct 2018 05:05:00 +0200
EU Commission proposal for 2021–2027 budget: lost opportunities In May, the EU Commission presented its proposal for the EU budget for 2021 to 2027—a period of change for the EU. Not only will Great Britain’s exit from the Union leave a significant hole in the budget, but at the same time the budget must cover a vast range of additional requirements. Current international policy developments are already demanding the EU acting as a community, and the European project will continue to require a high level of investment. For managing this balancing act expenditure cuts in traditional areas are indispensable. But the Commission’s lopsided proposal relies on higher revenue. Currently, the Commission is planning fund allocations in the absence of a policy strategy for the years after 2020. [...]

Tue, 16 Oct 2018 04:05:00 +0200
Alexander Konon has successfully defended his dissertation Alexander Konon, who is a member of the DIW Graduate Center, has successfully defended his dissertation at the University of Potsdam.

The dissertation with the title "Essays on Career Choice under Risk and Ambiguity" was supervised by Prof. Dr. Alexander Kritikos (DIW Berlin, University of Potsdam) and Prof. Dr. Marco Caliendo (IZA Bonn, University of Potsdam).

We congratulate Alexander on his success and wish him all the best for his future career!

Tue, 16 Oct 2018 03:43:00 +0200
Consequences of extreme weather events for developing countries based on the example of Mongolia In parts of Germany this summer, temperatures were extremely high and there was no rain to speak of: this is an example of an extreme weather event. Many people experienced physical discomfort and the livelihoods of some were threatened. Think of crop damage due to drought. Every unusually hot summer is not the consequence of climate change, nor are all hurricanes and all floods. Earlier decades also had their share of torrential rain and drought. But extreme weather events and climate change are directly related. Climate forecasts predict that in the future, extreme weather events will occur even more frequently and with higher intensity.

Prosperous countries such as Germany can cope with the damage caused by extreme weather comparatively well. Many people and households are insured and when damage is caused by drought, farmers can receive state aid for particularly hard-hit farms. The picture looks quite different in many developing countries. [...]

Thu, 11 Oct 2018 11:00:00 +0200